Spot gold edged up 0.1 percent to around $1,254 an ounce. It has stabilized after falling to a four-month low of $1,240.61 early last week. U.S. gold futures settled up $1.40 at $1,253.90 an ounce.

Asian stocks touched their highest levels in nearly three years on Monday, basking in the glow of a record close on Wall Street after bright U.S. jobs data pointed to improving economic momentum.

Gold is in a 'death cross'

Gold has just made a "death cross." Is it something bullion investors should worry about?

Friday data showed that U.S. employment returned to its pre-recession peak in May, with a solid pace of hiring that offered confirmation the economy has snapped back from a winter slump.

Gold, often seen as an investment hedge, has a negative co-relation with equities and the dollar, both of which have been bolstered by the U.S. jobs data. Hedge funds and money managers cut their bullish bets in gold futures and options in the week to June 3 to their lowest level since mid-January, according to data from the Commodity Futures Trading Commission on Friday.